Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 722 - ITAT AHMEDABADDeduction u/s. 80P - eligibility to co-operative bank for deduction u/s 80P - interest income as fixed deposit - Held that:- We noticed that the assessee was not operating u/s. 5(b) of the Banking Regulation Act as the assessee was not allowed to accept deposit of money from the public and do other banking activities as defined in the section 5(b) of the Banking Regulation Act. We further noticed that the assessee was a co-operative society registered under Registrar of Co-operative Society Mehsana, Mehsana, Gujarat State engaged in taking deposits from its members and providing advances to its members with the object of promotion and development of its members. In view of the above facts and the detailed findings provided by the ld. CIT(A) in his findings as supra we considered that the assessee is not a co-operative bank u/s. 80P(4) of the act. No merit in the contentions of the ld. counsel for considering the interest income as fixed deposit as business income. We find that it is to be considered as income from other sources as held in the case of Totgors Co-operative society Ltd. Vs. ITO Karnataka [2010 (2) TMI 3 - SUPREME COURT] wherein it was held that investing surplus funds in short term deposits would fall under the head income from “other sources” taxable u/s. 56 of the Act and it cannot be attributable to the activities of the society, therefore, the interest as fixed deposit received would not qualify for deduction u/s. 80P(2)(5)(a)(i) of the act. We also do not find any merit in the ground of the assessee to allow expenditure out of interest income from fixed deposit as after perusal of paper book, and order of the lower authorities we find that the assessee has not substantiated that there was any particular expenditure incurred on earning interest income from the fixed deposit kept with the bank as elaborated above in this order. Accordingly, the appeal of the assessee is dismissed.
|